Mass Hard Money

About Mass Hard Money

Mass Hard Money is a private lender in Winthrop, MA providing loans in Boston. They provide short term bridge loans, fix-and-flip loans, construction loans, and private commercial loans. They will make loans on most types of properties, including single family units, multi-family, apartments, office buildings, retail spaces, mixed use spaces, industrial facilities, medical offices, and undeveloped land.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Mixed Use, Industrial, Medical, Land

Areas Served: Boston

Lending Guidelines for Mass Hard Money

Below are the general loan guidelines published on the Mass Hard Money website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Mass Hard Money.

Loan Example 1

Nadine is a house flipper in Boston, MA. She locates an older property and decides to remodel it and flip it for a profit. The property costs $300,000 but she doesn't have the full amount so she takes a fix-and-flip loan with Mass Hard Money. The lender agrees to make a loan with a 55% loan-to-value (LTV) so they will loan $165,000 on the project. The terms of the loan also include a two percent origination fee that is to be paid at the closing and a 6 month, interest-only note with a 9% interest rate.

In addition to paying the $3,300 origination fee, Nadine will also have to fund $135,000 of the purchase with her own money, or 45% of the sales price. she will then pay $1,238 monthly to the lender. If Nadine sells the property for $450,000 after 6 months, she would earn a total profit of $139,275 after deducting the principle amount of $165,000, the money contributed at the close of $135,000, the origination fee of $3,300, and the total interest payments of $7,425. This profit doesn't include rehab costs.

Loan Example 2

Brittney is a an investor in Boston, MA. She purchases an older property for a renovation project and obtains a hard money loan from Mass Hard Money with the following features:

a) A $250,000 purchase price, b) a 80% loan-to-value (LTV), c) a 18 month term, d) a 10% interest rate, and e) a 5% origination fee.

Based on a $350,000 sales price at the end of the 18 month term, the final numbers for this deal would look like this:

$350,000 sales price
- $200,000 note principle (80% LTV)
- $50,000 cash paid at closing (20% on 80% LTV)
- $10,000 origination points (5% of the $200,000 principle)
- $30,000 total interest paid (18 months x 10% interest)
-----------------------
= $60,000 total profit (does not include taxes or rehab costs)

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